The results show no statistically significant relation between jet fuel hedging and firm value. We also observed that the effects of interest rate and currency hedging vary depending on the type of model. Our findings are not consistent with previous studies that show a positive correlation between jet fuel hedging and airline firm value, suggesting a hedging premium of 8-16 percent.

Additionally, we investigate the potential value of integrated financial risk management. Our analysis indicates that U.S. airlines can hedge a lower portion of both interest and jet fuel by integrating interest rate hedging with jet fuel hedging.